Asset Covered Securities Act, 2001

Authority may appoint manager in respect of designated credit institution or formerly designated credit institution in certain circumstances.

72.—(1) The Authority may request the NTMA to attempt to locate persons who are suitably qualified for appointment to manage asset covered securities business activities, or specified asset covered securities business activities, of a designated credit institution or a formerly designated credit institution in any of the following circumstances:

(a) if the institution has become insolvent or potentially insolvent;

(b) if as a result of becoming aware of information provided to the Authority, it is of the opinion that a manager should be appointed in respect of the institution in order to safeguard the interests of—

(i) holders of asset covered securities issued by the institution, or

(ii) persons who have rights under cover assets hedge contracts entered into by the institution, or

(iii) other creditors of the institution;

(c) if the registration of the institution as a designated credit institution is revoked under section 19 or the institution is subject to a direction given under section 20 or 21 .

(2) If the NTMA is successful in locating one or more suitably qualified persons for appointment to manage specified asset covered securities business activities of the credit institution, it shall give to the Authority the names and qualifications of, and other relevant particulars relating to, the person or persons concerned.

(3) If the NTMA has given to the Authority the name of only one person under subsection (2) and the Authority is satisfied that the person is suitably qualified to manage asset covered securities business activities of the credit institution concerned, the Authority shall appoint that person as manager of the asset covered securities business activities of that institution, or of such of those activities as are specified in the notice.

(4) If the NTMA has given to the Authority the names of 2 or more persons under subsection (2) and is satisfied that those persons, or any of those persons, are suitably qualified to manage asset covered securities business activities of the credit institution concerned, the Authority shall appoint the person who appears to the Authority to be the most suitably qualified of those persons.

(5) On appointing a manager in respect of a designated or formerly designated credit institution, the Authority shall publish in at least one daily newspaper circulating in the State a notice giving particulars of the appointment. Failure to comply with this subsection does not affect the validity of such an appointment.